Israeli Prime Minister Benjamin Netanyahu greets supporters with a wave as he claims victory in the Israeli election.
He tells them, "Against all odds: a great victory for Likud."
But his challenger, head of the center-left Zionist Union Isaac Herzog, says the election is not a foregone conclusion.
(SOUNDBITE) (Hebrew) ZIONIST UNION CHIEF ISAAC HERZOG, SAYING:
"This result allows us to return to power and since we will wait for the real results, as we are still looking at polls, everything is open."
He says he had already spoken to party leaders about forming a government.
Exit polls late on Tuesday put the two parties in a dead heat, but difficult coalition talks lie ahead.
Saeb Erekat, chief Palestinian negotiator in peace talks with Israel, says he has little hope.
(SOUNDBITE) (English) PALESTINIAN CHIEF NEGOTIATOR, SAEB EREKAT, SAYING:
"Well I think that also the Israeli election indicate business as usual. It seems to me that Mr. Netanyahu will form the next government in Israel and we all heard what he said yesterday.. Mr. Netanyahu has done nothing in his political life but to destroy the two-state solution."
Final results are not expected until early on Wednesday.
If Netanyahu wins, he'll become Israel's longest serving leader.

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